The stochastic economics of windpower

Michael Beenstock*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

A methodology is proposed to calculate the economic value of windpower, taking into account the volatility of wind velocity and the value of clean air. Investment in backup immunizes against wind volatility and an algorithm is proposed for exploiting the power curve in an optimal way, and for calculating capacity credit. The methodology is illustrated for a windpower site in Israel. This suggests that the stochastic nature of the wind does not greatly reduce the economic viability of windpower.

Original languageEnglish
Pages (from-to)27-37
Number of pages11
JournalEnergy Economics
Volume17
Issue number1
DOIs
StatePublished - Jan 1995

Keywords

  • Capacity credit
  • Cost-benefit analysis
  • Windpower

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